[Restaurant Community]

This was a post on a previous thread by Sportsmans that hit on issue facing the restaurant industry and a great topic for discussion. "I'm fairly new at this business. I leased a restaurant in 07. My profits have gone down since last fall. I've seemed to have tried it all. New menus ,advertising,daily specials,cutting costs where possible,cutting employee hours. I work many hours myself to save money 7 days a week some days 12 hour days.This is a small town our best time is the summer when we have tourists. Does anyone have any suggestions? Right now paying employees,taxes,food costs,repairs,utilities,insurance. I am really struggling here to try to make ends meet. And have no answers right now of what else to do."

[mojito]

For most of us Tues & Wed are our slow nites (we are closed on Mon)
So in an attempt to fill those nites, we have begun for the months of May & June "T-shirt Tuesdays" & "Wealthy Wednesdays"...We advertise via our website (FREE) post FLYERS in our window and bathrooms(FREE) and in our local paper's Dining Page ad once a month (CHEAP)
Everyone likes to receive something for FREE, why not a t-shirt, and while wearing it they are advertising for ME!
So on Tues, you come in AFTER 5 pm, DINE-IN ONLY, spend a minimum of $40 (easy) and get a t-shirt (limit 1 per table) We now have folks coming in to get ANOTHER TEE for the other spouse & kids!
Then on WED...Come in after 5pm, dine-in only, reach $50 or better and GET $5 off your entire check!!! If the goverment is handing out checks why shouldn't we!!! Hey, I am trying too...In these trying times we have to get real CREATIVE, just to attract a little more than the next guy...If we see a considerable increase in sales those nites from our norm we will just extend to go on maybe ALL SUMMER????

[Chef Suke]

Have you checked into offering a Meal service and delivery? Offer certain meals each month,they chose the serving size and pick from the menu, they pay inadvance then they can pick it up or you can deliver for a charge?
Check out some Personal Chefs web sites. Mines under construction.

[Elizabeth Verrill]

Sympathy probably won't help. Dining out is "discretionary spending", and the first areas to be hit.
I don't know the level of customer you are trying to "pull". A few things I have seen work around here are half size portions and early dining discounts. This appeals to older clients and is truly a service to them. If appropriate to your setting, a "kids eat free" from a special menu might be a pull. This might be a stretch (and depends where you are located), but if there are clubs or groups in your area that have dinner meetings, possibly offering them the use of your space, and maybe two dinner choices. This is usually a monthly thing, but perhaps a 20% off coupon might bring them back.
Ever watch "Gordon Ramsey" on BBC? He rescues establishments in big trouble in has some good ideas.
One final thought - great smells pull people in. If you have a tourist trade, maybe that smell of grilling ribs when they walk by might be more than they can resist.
Best of luck - it's rough out there. EV

[sportsmans]

We do offer free delivery in city limits. Have sent to go menus to business's and companies. That hasn't worked.

[sportsmans]

We do have a meeting room. This has been used a few times. We have advertised this. Have a local VFW that offers a breakfast twice a month. And weekend specails which huirt us when they have these. Specailly on Sunday mornings. We have a motel right next door also. Which we do get their business. The former owner has given me some ideas which I don't agree with. Such as we open at 6 am. He suggests opening at 9 am. Which we would lose the early risers at the motel. He suggests an all you can eat breakfast Mon through Fri. But we did try this in the slow season an it did not draw in any more customers. And now with the food prices we can't do this. Tried advertising and drawings. We depend on the tourists for summer months. It has picked up a little in the past couple of weeks. We also do soft serve ice cream with 24 flavors. But we also have a ice cream place in town. Former owner has also suggested we start doing pizza's. He is putting in the ovens now. But we also have a to go pizza business in town.

[Damon]

A full service restaurant, ice cream parlor, pizza place..what's next a taco bar? You can't be everything to everyone, if you want to try something new that's great but prior to doing so you need to consider a few things. First, what's the payback on your capital investment..how many pizzas do you have to sell to break even on the equipment. Second, do you have the space for the additional inventory that's needed. Third, and this is always a shot in the dark..if you offer something new, and I'll stay with the pizza idea; what's your cannibalization percentage and relative profit margins. You have to figure out what your profit will be on an average pizza, let's say for easy math it's $10.00, now what's your average profit on those meals served when you'll be making pizzas (I'd imagine it's lunch/dinner) and here let's say it $5.00 Now a certain percentage of the people who buy a pizza would of come in anyways. Now if it's two people splitting a pizza instead of each ordering a regular meal you've made noting 1 $10 pizza = 2 5$ meals. You only make money if pizza either increases your customer count OR yields a higher profit then your regular menu.

About opening at 9..easy math, for a few weeks keep track of the number of customers who come in, say between 6-7, 7-8, 8-9. Ascertain your operating costs and subtract from revenue. I changed mine several years ago after figuring out that the first hour of business during the week was no more then a break even.

Don't send your menus to businesses or clubs - take them. I tried mailing them with a discount coupon to large employers several years ago, sent them to one employer per month. Never got one back. This year have been making the rounds to the same employers, meeting with owner or HR (I'm in a small town so it's usually the owner) and give them a copy of the menu with discount coupons to distribute, explain our program of "honoring" an employer each month, now I get several back. A certain percentage are from people who would of come in anyways but not all. Likewise I use the meeting as an opportunity to explain how we can do gift certificates for such things as "Employee of the Month", employee anniversaries, Christmas etc..

I guess lastly, the question isn't how many hours you work, the question is are you saving more money by working those hours then you could by working to grow your business. That's a hard call, as you're not sure if you're going to get new business from your efforts but you do know that additional labor is going to cost you money. Perhaps a compromise is that you have someone work one of your shifts and you dedicate that time to marketing...do not even go to the restaurant then instead hit the proverbial bricks.

These are tough times, especially for we indies..I fully expect this year to be the worst we've had (have owned it for 10), and I'm not all that optimistic about next year. Watch your expenses, ensure the quality of your product and ensure that your customers have a memorable time. You might also want to subscribe to the "WOW Newsletter" at Restaurant Marketing: Marketing to Restaurants in USA & Canada. It's a weekly mailing, takes 30 seconds to read and every once in a while has something that just resonates with you a "duh" moment if you like.

[ChefBeorn@909.236.COOK]

Damon gave some great advice that makes sense. Doing too much doesn't allow you to showcase what YOU DO BEST. Here's my encouragement for you: Get "plugged in" with your community...join the chamber of commerce for your town, join rotary or other civic organization (make sure you go to the meetings otherwise you're wasting your time I belong to 3 city chambers and the rotary) make yourself available to local schools. I used to gross an extra $10k a month via a lunch program for a charter school. I know of one restauranteur who takes care of 6 schools. Make friends with your neighboring businesses. "Hit the bricks" like Damon said and market yourself...more!

I'm sure you've thought about it; C-A-T-E-R-I-N-G.
The overhead is less, you won't need to risk spending money unnecessarily and you'll lower your overall food costs because you're providing a second avenue to move your products. If you take this route, keep the food excellent, otherwise you'll hurt yourself in the long run. Be passionate about your food and service and over-celebrate EVERY victory.

Here in the Los Angeles area, I run a program where I train students to be prep cooks (Baldy View Regional Occupation Programs). I teach them about the front of the house as well. Here's the kicker, my students will work for you for free for 90 days and my office COVERS THE LIABILITY. That will lower overall labor costs, allow your best people to focus on the important stuff and, you'll save on additional liability insurance at the very least.

Check with your community services department in your town and inquire with community/vocational/professional cooking colleges to see if they offer externships or work experience programs.

[mattm]

There are some good suggestions on the "do donations to groups pay" thread. Check it out, maybe these ideas will help.

[bigjude1]

Originally Posted by Restaurant Community

This was a post on a previous thread by Sportsmans that hit on issue facing the restaurant industry and a great topic for discussion. "I'm fairly new at this business. I leased a restaurant in 07. My profits have gone down since last fall. I've seemed to have tried it all. New menus ,advertising,daily specials,cutting costs where possible,cutting employee hours. I work many hours myself to save money 7 days a week some days 12 hour days.This is a small town our best time is the summer when we have tourists. Does anyone have any suggestions? Right now paying employees,taxes,food costs,repairs,utilities,insurance. I am really struggling here to try to make ends meet. And have no answers right now of what else to do."

just my opinion, but choose your slow days, and close those specific days. Or, cut your hours down. It is difficult at this time to own your own business. I am fortunate that I am busy, so I don't complain. A lot of other restaurants are experiencing the same difficulties, you are not alone. Good Luck!